General overview for 08/08/2014 09:30 CET

Another five waves down have been made in this pair. According to the main wave count, it can be a beginning of a third wave. On the other hand, there is possibility, that green wave (iv) has been a little more extended to the upside and the last leg down is green wave (v) of red wave 1. This would mean, that the market is now in a corrective cycle and a bullish divergence supports this view. To confirm further gains, the market must breakout of the range zone and trade above the level of 136.26. The target in that case would be a golden trendline test.

Support/Resistance:

135.66 - WS3

135.83 - Intraday Support

136.15 - WS2

136.26 - Intraday Resistance

137.04 - WS1

Trading recommendations:

As long as the price is trading below the level of 136.26, sell orders should be considered to open, with tight SL above the level of 136.26 and TP at the level of 135.66 with a possible downside extension.